Saturday, January 15, 2011
Corn, Soybeans Fall as China May Slow Purchases of U.S. Supplies
Corn and soybean prices fell from 29-month highs after China took steps to cap inflation, signaling less demand for crops from the U.S., the world’s biggest exporter.
China told banks to set aside more deposits as reserves for the fourth time in just over two months, stepping up moves to rein in liquidity. The country boosted U.S. soybean purchases 13 percent from Sept. 1 to Jan. 6, government data show. China’s anti-dumping investigation of a corn-based feed ingredient produced from ethanol may disrupt trade.
“The Chinese move to tighten credit has triggered some selling after this week’s gains,” said Bill Biedermann, a senior vice president at Allendale Inc. in McHenry, Illinois. “People are also talking about a slowdown in Chinese demand for U.S. exports.”
Corn futures for March delivery fell 1.5 cents, or 0.2 percent, to $6.41 a bushel at 10:23 a.m. on the Chicago Board of Trade. Yesterday, the price reached $6.495, the highest for the most-active contract since July 18, 2008.
Soybean futures for March delivery dropped 2.5 cents, or 0.2 percent, to $14.135 a bushel. Yesterday, the oilseed reached $14.325, the highest since July 21, 2008.
Corn is the largest U.S. crop, valued at $48.6 billion in 2009, followed by soybeans at $31.8 billion, government data show.
This post was written by: HaMienHoang (admin)
Click on PayPal buttons below to donate money to HaMienHoang:
Follow HaMienHoang on Twitter
0 Responses to “Corn, Soybeans Fall as China May Slow Purchases of U.S. Supplies”
Post a Comment